corporate presentation july - 2003. 2 except for the historical information contained herein,...
TRANSCRIPT
CORPORATE
PRESENTATION
July - 2003
2
Except for the historical information contained herein, statements in this presentation and the subsequent
discussions,which include words or phrases such as “will”, “aim”, “will likely result”, “would”, “believe”, “may”,
“expect”, “will continue”, “anticipate”, “estimate”, “intend”, “plan”, “contemplate”, “seek to”, “future”, “objective”,
“goal”, “project”, “should”, “will pursue” and similar expressions or variations of such expressions may constitute
"forward-looking statements". These forward-looking statements involve a number of risks, uncertainties and
other factors that could cause actual results to differ materially from those suggested by the forward-looking
statements. These risks and uncertainties include, but are not limited to our ability to successfully implement our
strategy, our growth and expansion plans, obtain regulatory approvals, our provisioning policies, technological
changes, investment and business income, cash flow projections, our exposure to market risks as well as other
risks. Ranbaxy does not undertake any obligation to update forward-looking statements to reflect events or
circumstances after the date thereof.
Disclaimer
3
“To become a Research based International
Pharmaceutical Company”
Our Mission
4
“To become a Billion Dollar Company
by 2004”
Our Vision
5
• Amongst the Top 100 Global Pharmaceutical Companies
• 9th Largest Generic Company Worldwide*
• Manufactures and Markets Generics, Branded Generics and APIs
• Products available in over 70 countries with Ground presence in
25 countries and Manufacturing operations in 7
• 6 Core Markets - USA, India, UK, Germany, China and Brazil
• Over 8000 multicultural, workforce
Continued….
* Amongst Publicly Traded Companies
Source: MedAdNews – Nov’2002
Corporate Highlights
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• Global Net Sales US $ 764, a growth of 38%
• 72 % Overseas Revenue
• 28 Global Brands
• NDDS :
* 4 Platform Technologies
* Cipro OD, once a day ciprofloxacin licensed to Bayer AG. Cipro XR 500mg was
launched in US in Jan 2003 by Bayer AG. Approval from US FDA for 1gm awaited
• NDDR : RBx 2258, First NCE licensed to Schwarz Pharma AG, undergoing
Phase II Clinical Trials in India
• 2 NDAs filed in 2002 (Metformin syrup, Ofloxacin OD tablets)
Corporate Highlights
NCE = New Chemical Entity , NDDS = Novel Drug Delivery Systems , NDDR = New Drug Discovery Research , NDA = New Drug Application
7
Core Markets
• USA• India• UK
Products Available in over 70 Countries, Ground Presence in 25 Countries, 6 Core Markets
• India
Asia-Pacific & Latin America
• China • Vietnam • Malaysia • Thailand • Myanmar• Singapore• Brazil• Mexico• Peru• Venezuela
• USA
Europe, CIS & Africa
• UK• Ireland • Poland • Russia• Germany• Ukraine • South Africa • Egypt • Nigeria • Kenya• Ivory Coast
Our International Presence
• Germany• Brazil• China
Middle East
• Sri Lanka• Saudi Arabia
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Value
Time
•Global Generics Business
•Critical Mass in Focus Markets -
USA
•Leveraging India Advantage
•Brand Building in Developed
Markets
•Proprietary Technology
Products
•Networking and Alliances
•Expanding Discovery
Research
•International Clinical
Development
•Rx Marketing
Horizon 1
Drive core growth
Horizon 2
Build momentum of emerging growth engines
Horizon 3
Secure future options
Innovative Research
Specialty Pharma
International Generics
Ranbaxy’s Strategic Architecture
9
Research & Development : Focus
NDDRNDDS
ANDAs
RANBAXY
3 Key Areas
NDDS = Novel Drug Delivery Systems , NDDR = New Drug Discovery Research, ANDA = Abbreviated New Drug Application
10
R&D ... Key Priorities
• A New Paradigm for ANDAs
• Branded products through focussed NDDS
applications
• Drive Discovery Output and Enhance Early
Discovery
• Exploit Biotech Revolution for Innovative
Pharmaceutical Research
• Leverage Alliance Network
• Increase Productivity and Shorten
Development Timeline - New Processes,
Automation and Efficient Organisational
Structure
• Develop Leaders at all Levels
2001 2002 2003
37
25
50-60
CAGR ~ 50%
R&D Investments
US $Million
11
NCEsSPECIALITY PRODUCTS
R&D ... Product Strategy
GENERICS
• ANDA filings
• Para IVs
• Blockbuster Para IIIs
• Complex Technology and
Niche Products
• NDDS Products• NDAs , 505 b(2)
• Pseudo Brands• Technology and Dosage
Forms Innovations
• Co-development and
Collaborative Research
• Derma, Paediatric, and
Urology franchise
• Long term play
• Build expertise in
Clinical Development
• Research Alliances
NCE = New Chemical Entity , NDDS = Novel Drug Delivery Systems , NDA = New Drug Application , ANDA = Abbreviated New Drug Application
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• New Therapeutic Areas• Metabolic Disorders, Anti-Inflammatory
Drug Discovery Research
Phase 1
Phase 2
Pre-Clinical
Late Discovery
RBx 9841Urology- Overactive Bladder
RBx 8700Anti-Infective -Tuberculosis
RBx 7796Pulmonary Bronchial Asthma
RBx 2258Urology- BPH
RBx 7644 Anti-Bacterial Gram + Infection
IND Filed
NCE – New Chemical Entity
NCE Pipeline
RBx 6198Urology -BPH
RBx 9001Urology- BPH
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• Value Added Drug Delivery Systems for* Taste Masking
* Effervescent Tablets
* Soft Gelatin Capsules
* Topical Gels
NDDS
4 Patented Platform Technologies
Modified Matrix8 products launched
Products under development
Gastroretentive
Cipro-OD and Oflox-OD
2 products launched
Multi-particulate
Products under developmentAerogel
Products under development
Novel Drug Delivery Systems
• Expansion into Transdermal and Inhalers
14
12 12
417 14
47
30
1011
28
32
18 25
5518
2464
50
12
25
39
49
Filings
Approvals
Filings
Approvals
Filings
Filings
Approvals
Approvals
International Regulatory Status
1999
2000 and 2001
2002
Excludes outsourced ANDAs
China USA Brazil Western Europe
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R & D– I
Gurgaon, India
R & D - II
Gurgaon, India
Research & Development Center
• Over 800 R&D Personnel
• Dedicated Facilities for * Innovative Research* Generics Research
• Drug Discovery Research* Therapeutic areas : Urology, Anti-Infectives,
Pulmonary
• Novel Drug Delivery Systems * Focus on Creating Rx products
* Expand Technology Platforms
• Conformance to International Regulatory Framework
• Multiple Collaborative Research Programs
• New Technologies / Areas* Biotechnology , Herbals
• Expansion Plan to add 200,000 sq feet area
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Consolidated Financial Results - 2002
16%
38%
2001 2002
11%
22%
2001 2002
ROCE
PBT / Sales
Return on Capital Employed
EBITDA = Earnings before Interest, Tax, Depreciation & Amortisation
Particulars Dec 2001
(USD Mn)
Dec 2002 (USD Mn)
Net Sales 553 764
EBITDA 77 163
% to sales 13.8% 21.3%
Operating Earnings before tax 49 153
% to sales 8.8% 20.1%
Earnings before tax 64 172
% to sales 11.6% 22.4%
Earnings after tax & minority interests 56 133
% to sales 10.1% 17.4%
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Q2 Growth H1 Growth
Particulars 2003 2002 (%) 2003 2002 (%)
Dosage Forms
India and Middle East 54 44 21.5 89 82 8.5
Europe, CIS and Africa 41 23 77.1 73 46 58.7
Asia Pacific and Latin America 16 17 (5.2) 30 28 7.1
USA 101 74 36.6 213 125 70.7
Sub Total 211 158 33.6 405 281 44.2
Active Pharmaceutical Ingredients (API) 24 25 (5.0) 58 50 16.0
Allied Businesses * 6 5 12.0 11 9 22.2
Net Sales 241 189 27.9 474 340 39.5
* Animal Healthcare, Diagnostics and Fine Chemicals
US$ Millions
Global Sales
18
Business Segment Contribution
India & Middle East 19%
Europe, CIS Africa 15%
Asia Pacific & Latin America
6%
USA 46%
API 12%
Allied Businesses
2%
H1 - 2003
India & Middle East 23%
Europe, CIS Africa 14%
Asia Pacific & Latin America
10%
USA 38%
API 12%
Allied Businesses
3%
2002
19
358444
668
2000 2001 2002
2002 Dosage Forms contribution at 85%
495
579
789**
Dosage Forms
Focus on Pharmaceutical Sales
**Gross Global Sales
CAGR ~26 (Global Sales)
CAGR ~37
20
• Manufacturing Locations in Seven Countries
• FDA-USA / MCA-UK / MCC-South Africa / TGA-Australia Approved
Facilities
• Established track record with FDA-USA
• Successful Partnership with Vendors for Quality Compliance
• High degree of Backward Integration
• Cost Leadership
• Producer of world class Generics, Branded Generics,
Active Pharmaceutical Ingredients and Complex Molecules
• Over 50 in-house APIs developed
Manufacturing Strengths
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Manufacturing Presence
China
MalaysiaIreland
Nigeria
USA
VietnamIndia
Active Pharmaceuticals Ingredients (APIs)Facility, Mohali Dosage Forms Facility, Paonta Sahib]
Active Pharmaceuticals Ingredients (APIs) Facility, Toansa Dosage Forms Facility, Dewas
22
India .. Strengths
• Ranked 3 in Indian Retail Market with Domestic Market Share of 4.63%
• Strong Brand Marketing Team with an extensive Distribution Network
* 3 brands in top 25
• Strong Presence in Anti-Infectives, Cardiovascular, Anti-inflammatory &
Dermatology segments
• Growing Presence in Central Nervous System and Gastro Intestinal
Tract, areas
• 20 New Products Launched in the H1-2003 period
(Chronic Therapy share 33.3% and Non Anti-infective 59.5%)
• Largest Field Force comprising 1770 personnel
Source: ORG MAT May 2003
23
USA .. Leading International Expansion
• Ranked No. 28 by prescription share
• US sales for the H1-2003 were at US $213 Mn.
• USA contributes 45% of the global sales (H1-2003)
• It is the largest market for the Company
• Strong ANDA pipeline
• Para IVs ANDAs filed till date ~ 24
• Potential first to file for 8-9 out of 24
• Brand Market Initiative taken off with over 200 sales representatives.
• Increasing Sales & Distribution reach
Sales in US $ Mn
4265
113
296
0
50
100
150
200
250
300
350
1999 2000 2001 2002
CAGR 92%
24
Other Core Markets
• GERMANY* Sales of US $9 Mn.(2002)* Field Force of 43 for promotion to doctors* Focus on Inorganic acquisitions
• UNITED KINGDOM* Sales of US $31 Mn. (2002)* Ranked 6th amongst Generics market share of 3.6%* 80 product lines* Brand Basket of 6-7 products
• BRAZIL* Sales US $32 Mn. , growth ~100%(2002)* Largest international player in generics* Ranked 5th in generic segment and 53rd in overall* 19 new product launched in 2002 (17 generic, 2 branded)* ~ 100 products Approved / Under Received by ANVISA
• CHINA* Secondary sales of ~ US $11.5 Mn. (2002)* Robust Pipeline for year 2003, including Cifran OD & Zanocin OD
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• Building ‘Innovation’ Engine at R&D
• Sustain growth momentum in USA
• Attain critical mass in Europe and Latin America
• Specialty products focus for “Brand” marketing
• Fortifying home business – leverage India base
• Seeding the Japanese market
• Networking, licensing and acquisitions
* Technology, new market entry vehicles, brands / proprietary products
• Global talent pool to fuel growth
Way Forward
26
“To become a Research based International
Pharmaceutical Company”
Our Mission
27
Thank You